Policyholders may be shocked to learn, while agents can help you navigate auto policies, some may not always have your best interest at heart. The largest auto insurers typically use contingent commissions to compensate agents who sell policies. Representatives typically steer customers to policies that reap larger commissions for them, so how do you pick policies that are best for you? Experts say to understand what you’re buying and whom you’re purchasing the policy from.
It’s Not That Easy To Shop For A Policy
When it comes to any auto insurance thornton co experts say consumers typically rely upon heavily-used marketing channels to select their insurance carrier, rather than choosing an agent based on their needs. However, there are several things to do in order to lower the cost of vehicle insurance. First, the key to purchasing a policy should not be based on cost alone. It’s the fine print that really matters. Consumers should spend more time on their specific needs, what’s offered in the policy, and then the price.
How To Get The Best Policy
Many companies can give you some relief if you buy two or more types of insurance, often referred to as “bundling.” They may also provide you with a reduction if you intend on insuring one or more vehicles. And many companies reduce their rates for customers 55+ years. But before you sign on because this sounds like a good idea, keep in mind, each company has their own rules on how they rate and price customers, how they handle claims, and their criteria for raising rates after you file a claim.
No one considers the “claim rules.” Each insurer has guidelines that explains what will happen to your policy after you file a claim. Will one claim trigger a rate increase or non-renewal? Does fault and claim severity matter? Potential policyholders should find this out before picking an insurer. And most policyholders are not aware that just because you do receive a non-renewal notice, does not mean you cannot appeal. Contact the insurer and ask for reconsideration.
Also, look at the policy limits and exclusions. Some insurance companies offer better coverage and fewer exclusions at a higher price. Others offer lower premiums for coverage that is less comprehensive. Experts say you must focus on adequately insuring your vehicle and avoid policies that exclude those items that are necessary.
The Bones Of Your Policy
The bare bones of an auto policy are collision, comprehensive, and the liability coverage. Collision covers damage from hitting or being hit by another vehicle, animal or object. Comprehensive covers most other types of accidental damage, like glass breakage, vandalism or theft. Liability covers injuries and damage to other vehicles, individuals, and property.
Do you need collision and comprehensive coverage? If you have a high value car or one that is financed, then you’ll probably want both coverages. If you drive an older, dinged-up car, then you can avoid paying high premiums, especially if the car is not worth it.
The key to finding a cost-effective policy is doing your homework. It makes sense to search several companies for quotes before making a decision on a policy. This way you get quality coverage at a price that fits your budget.